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Your MARR for a particularly risky investment is 25%. Option A has an IRR of 27.4% and a payback period of 8 years, while option
Your MARR for a particularly risky investment is 25%. Option A has an IRR of 27.4% and a payback period of 8 years, while option B has an IRR of 27.3% (which is nearly identical to the IRR of Option A) and a payback period of 5 years. Both alternatives require the same initial investment. Which would you choose and why? Select one: O a. option B because it has a shorter payback (partially mitigates the risk) O b. option B because it has a lower return (it must be lower risk) O c. option A because it has a longer payback (you get paid back for a longer time) O d. option A because it has a higher return (you make more money) O e. either one because they both have IRR > MARR cross out cross out cross out cross out cross out
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